These are indeed uncertain times. There is one thing that you can make stable and certain, your energy bills. You can do that by going solar for your home or business. Don’t delay starting your solar project any longer, because 2020 is the last year that you can monetize the 26%.
Federal Investment Tax Credit
What exactly is the federal Investment Tax Credit? It is a dollar for dollar credit against your tax liability – not a deduction. This credit covers 26% of your total solar project costs. For example, if you owe $5,000 in taxes, that $5,000 is your tax liability. If you bought a solar system for $20,000, 26% of that system cost is $5,200. That means – you can apply for your $5,200 tax credit against your $5,000 tax liability to owe $0, with a $200 credit to carry over into the next year. Are you interested in learning more about solar investments and financing options? You can learn more here.
How to Qualify
To achieve this 26% tax credit you must act quickly, our queue for the end of the year is filling up. Any residential projects installed on or after January 1, 2021 will qualify for a 22% tax credit. If you have a business with an installation scheduled in 2020, you do not need to have the arry fully completed by the first of the year to benefit from the tax credit.
On January 1, 2022 the Federal Investment Tax Credit drops to 0% for residential projects and 10% for commercial projects. Now is th time to act to make your solar dream a reality.